Almedio Inc. (7859) AI Stock Analysis

• Market Cap: ¥5.03B
• Dividend Yield: N/A
• Average Volume (3M): 98.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.74
• Revenue Growth: -66.67%
• EPS Growth: -108.79%
• Country: JP
• Employees: 310
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -12.42
• Shares Outstanding: 20,806,316
• 10 Day Avg. Volume: 115,930
• 30 Day Avg. Volume: 98,640
• PEG Ratio: -0.16
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 1.04
• P/FCF Ratio: 33.59
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥270.00 ▲(70.89% Upside)
• Action: Upgraded Date: 03/07/26
• Date: Action: Upgraded 03/07/26

The score is driven primarily by stable financial fundamentals (strong balance sheet and positive operating cash flow) and strong technical momentum (price above key moving averages with positive MACD). Offsetting this is weak/less interpretable valuation due to a negative P/E and no dividend yield data, alongside recent revenue and margin softening.

Positive Factors

Strong balance sheet and low leverage

A high equity ratio and low debt burden provide durable financial flexibility: they reduce refinancing and insolvency risk, allow management to fund capex or M&A without excessive leverage, and support operations through cyclical downturns, preserving strategic optionality over months.

Consistent positive operating cash flow

Reliable operating cash generation underpins long-term viability: it enables internal funding of working capital and investments, cushions earnings volatility, and supports a sustainable investment program. Even with capex-driven FCF swings, steady operating cash flow is a durable strength.

Historically healthy gross and net margins

Sustained healthy margins reflect structural cost advantages or pricing power, improving resilience to revenue shocks. Margin durability supports cash conversion, funds reinvestment, and provides buffer for reinvestment or strategic initiatives across the medium term.

Negative Factors

Sharp recent revenue decline

A steep revenue contraction materially weakens the top-line base and challenges scale economics; sustaining investments and fixed-cost absorption become harder, pressuring long-term growth prospects unless management stabilizes demand or diversifies revenue streams over coming quarters.

Compressing EBIT/EBITDA margins

Declining operating margins reduce earnings resilience and free-cash-flow generation capacity. Over months, margin compression limits reinvestment, raises break-even risk, and forces either cost restructuring or price increases to restore profitability, both of which can be disruptive.

Decline in total assets may constrain growth

A drop in total assets can indicate underinvestment or asset disposals that reduce capacity to scale revenue. Over the medium term this may limit production, R&D, or geographic expansion, making it harder to recover revenue and jeopardizing medium-term growth plans.

Almedio Inc. Business Overview & Revenue Model

Company Description

Almedio Inc. engages in the research, development, manufacture, and sale of test tapes and test discs in Japan. It operates through Insulating Material, Storage Solution, Archive, Industrial Solution, and Nano Material segments. The Insulating Material segment manufactures and sells refractory materials, thermal insulators, and related products. The Storage Solution segment develops, manufactures, and sells optical drives mounted. The Archive segment preserves information such as documents, images, pictures, etc.; provides optical disc archive; and offers digitalization of information, recording, and preservation. The Industrial Solution segment develops, manufactures, and sells test discs. The Nano Material segment develops, produces, and processes nanomaterial products, such as carbon nano fiber/ carbon microfiber, synthetic graphene powder, and high modulus polypropylene CNF pellets for aviation / space, automobile, medical products, and sports / leisure goods industries. The company research, develops, manufactures, and sells measuring instruments for optical media and industrial equipment for the optical disc drives. In addition, it provides attestation tests for the DVD verification laboratory; and tests for various kinds of discs. The company was formerly known as A-BEX and changed its name to Almedio Inc. in March 1997. Almedio Inc. was incorporated in 1981 and is based in Kunitachi, Japan.

How the Company Makes Money

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Almedio Inc. Financial Statement Overview

Summary

Financials are solid overall, supported by a strong balance sheet (high equity ratio, low leverage) and consistent positive operating cash flow. However, the recent decline in revenue and profitability margins (EBIT/EBITDA) plus fluctuating free cash flow due to capex reduce the score.

Income Statement

Almedio Inc. has shown strong revenue growth over the years, with a notable increase from 2023 to 2024, but a decline in 2025. Gross and net profit margins are healthy, indicating efficient cost management. However, the recent decline in revenue and margins compared to the previous year highlights potential challenges in maintaining growth momentum. EBIT and EBITDA margins have also decreased, suggesting a need for operational improvements.

Balance Sheet

The company maintains a solid balance sheet with a high equity ratio, suggesting financial stability. A low debt-to-equity ratio indicates conservative leverage, reducing financial risk. The return on equity has been positive, reflecting effective use of shareholder funds. However, the decline in total assets over the latest period is a point of concern that may impact future growth.

Cash Flow

Almedio Inc. has generated consistent positive operating cash flows, indicating strong cash generation capabilities. However, the free cash flow has fluctuated, primarily due to significant capital expenditures. The free cash flow to net income ratio shows room for improvement in converting profits into cash flows. The recent decline in free cash flow growth rate necessitates careful management of expenses and investments.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	4.46B	5.80B	11.56B	4.94B	3.27B	2.68B
Gross Profit	1.39B	2.10B	4.98B	1.50B	908.63M	773.78M
EBITDA	427.53M	1.10B	3.50B	666.72M	146.43M	68.58M
Net Income	-67.90M	476.40M	2.33B	164.06M	-39.79M	-135.76M
Balance Sheet
Total Assets	8.98B	9.69B	9.76B	5.81B	4.35B	3.48B
Cash, Cash Equivalents and Short-Term Investments	4.43B	4.10B	3.95B	1.46B	1.54B	1.55B
Total Debt	541.31M	545.32M	423.77M	792.13M	757.28M	346.11M
Total Liabilities	1.17B	1.48B	2.20B	2.42B	1.60B	965.53M
Stockholders Equity	7.81B	8.21B	7.55B	3.39B	2.75B	2.51B
Cash Flow
Free Cash Flow	0.00	178.87M	1.18B	-539.52M	-619.39M	-90.61M
Operating Cash Flow	0.00	866.45M	2.25B	447.85M	-280.72M	45.22M
Investing Cash Flow	0.00	-698.72M	-1.28B	-1.05B	-347.06M	-135.26M
Financing Cash Flow	0.00	-76.71M	1.40B	439.00M	547.89M	-41.01M

Almedio Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 158.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7859, the sentiment is Neutral. The current price of 158 is below the 20-day moving average (MA) of 245.35, below the 50-day MA of 212.86, and below the 200-day MA of 207.22, indicating a neutral trend. The MACD of 14.66 indicates Positive momentum. The RSI at 51.34 is Neutral, neither overbought nor oversold. The STOCH value of 14.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7859.

Almedio Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7859	72 Outperform	¥5.03B	-3.18	―	―	-66.67%	-108.79%
6969	70 Outperform	¥3.06B	-23.67	―	―	16.21%	3915.63%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6858	59 Neutral	¥9.23B	16.72	―	2.45%	15.66%	-69.17%
6666	56 Neutral	¥6.02B	66.90	―	2.33%	7.71%	-215.42%
6664	48 Neutral	¥4.44B	-9.65	―	―	5.29%	47.66%
6926	46 Neutral	¥4.52B	-3.85	―	―	-6.31%	-64.22%